CNB Financial, United Financial to merge

CNB Financial Corp. of Worcester has signed a $25 million merger agreement with United Financial Bancorp of West Springfield.

CNB said Thursday that it has terminated a previously-announced merger agreement with the parent company of Pittsfield-based Berkshire Bank. CNB will pay Berkshire Hills Bancorp a $970,000 fee for terminating the deal.

Under the agreement with United Financial, CNB shareholders can choose between receiving cash or UFB shares, or a combination of cash and stock.

CNB has six branches in Worcester County while UFB operates 15 branches in western Massachusetts. Officials say the combined bank will have about $1.5 billion in total assets. (AP)